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India To Decide On Foreign Ownership In Domestic Airlines

India’s federal cabinet is likely to meet next week to decide whether to allow foreign airlines to buy stakes in Indian carriers, a senior civil aviation ministry official said.

“The committee of secretaries has already recommended raising the FDI [foreign direct investment] limits in the sector,” said Civil Aviation Minister Ajit Singh. The panel of ministers also is expected to consider allowing India’s carriers to import jet fuel directly.

A government panel recently recommended allowing foreign airlines to take stakes of up to 49% in domestic carriers, a significant step up from the 26% cap previously proposed by the Department of Industrial Policy and Promotion. Current regulations permit foreign direct investment of up to 49% in Indian carriers, but those rules exclude foreign carriers from investing in the sector.

The proposal to allow foreign carrier investment in India’s aviation industry has been under consideration for almost a decade, but Indian carriers recently have stepped up their lobbying for the change because of the poor financial condition in which a number of the airlines find themselves.

On a business jet, the cabin experience is crucial to the satisfaction of an executive and his or her team. In the past this often meant larger — and more, and higher definition — screens, along with more buttons, bells and whistles....More